Hedge fund fine raised to $99m

THE US regulator has increased a fine levied on a British hedge fund and its boss to nearly $98.6m (£61.99m).

Lewis Chester and his firm, Pentagon Capital Management, must pay the huge penalty after the Securities and Exchange Commission said they engaged in abusive mutual fund trading.

Chester, a Conservative Party donor, and Pentagon were last month told to pay $76.8m after a long-running probe into improper trading in mutual fund shares between 1999 and 2003.

Seven weeks ago a New York judge said Chester and Pentagon had “intentionally and egregiously” violated federal securities laws by engaging in “late trading”, or making mutual fund trades after the market closed, but at stale prices. London-based Chester, 43, who was a contemporary of David Cameron at Oxford University, is expected to appeal the case.